Next Xbox Could Cost $1,800 and Arrive in 2028, Report Says

Would you drop $1,800 on a new console? That's the eye-watering number floating around for Microsoft's next-gen Xbox, according to a new Fortune report. The console, reportedly codenamed Project Helix, could cost anywhere from $1,200 to $1,800 unless Microsoft decides to subsidize it. The report also points to a possible 2028 launch.

Subsidizing hardware is nothing new in this industry. Platform holders often eat some of the cost and make it back through games and services. Back when the Xbox Series X and S launched in 2020, then-Xbox CEO Phil Spencer said Microsoft was losing as much as $200 on every console sold. So a pricey Project Helix isn't out of the question, but that range is still a big jump from what you're used to paying.

So what's driving the potential sticker shock? The report points to ongoing AI-fueled memory and component shortages. Here's the ironic part: Microsoft is one of the biggest backers of the AI build-out, meaning its own efforts are helping create the environment where the next Xbox could be incredibly expensive. Xbox CEO Asha Sharma reacted to that irony by saying it's "wonderful" that GPUs have use beyond gaming. Meanwhile, richer households already make up the majority of console buyers today, and that trend is expected to continue.

The report also mentions a "next-generation handheld device" for Xbox that could arrive by the end of 2027, though there's no word on pricing or other details. Project Helix is described as the name for a "family of devices," which would seemingly cover both the console and the handheld.

Behind the scenes, things reportedly got tense. Microsoft's Xbox and Windows teams allegedly battled over what software should run Project Helix. The Windows team wanted the handheld to use a "trimmed-down" version of Windows Home, while the Xbox team pushed to build its own dedicated software. An unnamed "senior Xbox executive" was said to have threatened to pull the plug on the whole handheld rather than use Windows. Going forward, Xbox is "largely controlling the direction" of the handheld's OS, but Sharma told the site the two teams work together. "We can't build Helix on our own," she said.

Sharma took over as Xbox CEO in February this year and immediately declared Xbox was in an unhealthy place, taking drastic measures she believes may right the ship, including layoffs, studio closures, and game cancellations. The layoffs, which have included about 2,000 people so far, aren't done yet, according to the report, with more Xbox layoffs coming this month, in November, and again in January 2027. Sharma also made major organizational changes, including handing Halo over to Activision for the future.

What do you think of that possible $1,800 price tag? Will you be picking this up, or is that a hard pass?